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All Forum Posts by: Chris Noles

Chris Noles has started 7 posts and replied 51 times.

Post: Smoky Mountain Slow Down?

Chris NolesPosted
  • Investor
  • Jasper, ga
  • Posts 51
  • Votes 25

@Leslie Anne Morris what do you consider best amenities?

A realtor who works with investors helped me pencil this out.  We anticipate about $29K in gross revenue with about a $2,000 profit after acquisition costs in year one and about $8,000 profit year 2 and beyond.  

Quote from @Raymond J. Rodrigues:

@Chris Noles, with these being non-warrantable condos since they allow short term rental, 20% down payment is most likely the lowest down payment you'll find. I've seen rates start around low 7% range depending on your overall loan profile. 


 Thanks for that info.  At this price point, I am fine with 20% down.  

Thanks so much for your input!  It sounds like you had a similar first impression.  I found out recently that there have been 30 sales within the last year plus 18 on the market right now in that same building, so there is activity for sure.  

That's good to know about studios being hard to sell, yet they tend to rent OK..

At this price point, 20% to 25% down isn't that bad.  

However, a 3 bedroom unit would likely cashflow better for sure.

There is a lot to think about here, but it could be a great base hit for somebody...



Quote from @Sarah Kensinger:

This was so interesting to read since we were all over this exact condo complex several months ago! I nearly fell in love with a particular unit that was beautifully renovated, turnkey, had a view of the ocean, and like you said the price point was better than other beachfront condos. It's still for sale with a large price drop from when we were looking at it. 

So, we had several reservations on purchasing a unit in this particular complex. The first was all the units that were for sale. Today when I looked, pretty much all the units we had checked into are still available and there are even more for sale! The assessment probably has a lot to do with people wanting to sell, but I know a lot of the updating is foundational problems and after the condo collapse in south FL people are pretty leery of older condo buildings. 

Our realtor also warned us that studios are hard to sell and don't hold as much value as a 1+ bedroom condos. Investors don't want to purchase a "fancy" hotel room so it would pretty much be a purchase you make and don't resell. 

When it comes to STR profit I was surprised at how well it did last year (before renovations started), compared to other studios we had looked at in different condo complexes. This property was built in 1965 and became an iconic landmark to PCB, some people have brought 3 generations of families to stay at this property for spring break and summer vacations. It does have a bit of historical interest that helps with marketing and people wanting to stay there. But since studios are the only option that makes it hard for families unless they book a couple units, which most wouldn't want to do. PCB draws a lot of families and groups of people so it would be hard to keep a studio profitable since it wouldn't be large enough.

Also, I can about promise you this complex is non-warrantable, so you'll have to bring a minimum of 20% but more than likely 25% down because of that. If you could find a 3+ bedroom property that's a short walk or even a short drive to the beach and Pier Park, it would perform much better than a studio on the beach. 


Well said. It doesn't change the rules of just running the numbers, but these older studio units have some unique challengs for sure.

Quote from @Brooklyn McCarty:
Quote from @Chris Noles:

Hi,

We currently have a beachfront 1BR/Bath condo in Myrtle Beach that we acquired in 2022, and we are looking at possibly acquiring a second STR in another location.

We understand this is a difficult time to find good cash flowing deals at today's interest rates and listing prices.

We have always preferred to vacation in the Gulf of Mexico, but we couldn't make the numbers work there last year which is how we ended up in Myrtle Beach at a price point we are happy with.

I just stumbled across quite a few beachfront studio condos that are being sold at a great price near the Panama City Beach area. The building was built in 1965, and it is one of the oldest in the area. They are about to go thru a renovation that will be completed by the end of this year, so the HOA issued a mandatory assessment for all of the condo owners. This assessment is about $40,000 per unit. This probably explains why there are quite a few units for sale on the market, but they are selling from $169,000 to $250,000. Some of the sellers have already remodeled the inside, and some sellers are willing to pay the assessment fee.

This looks like a good deal to find a unit right on the water, but the annual rental revenue is just $25k to $30K annually.

Also, these units are about 300+ sq ft. some have partial views of the gulf, but for most of the units you have to go to the community pool deck to get any gulf front view.

Here are some of the pros I see with this investment:

* Low cost of entry for a gulf front rental in a desirable area

* The amenities and building should be more valuable after construction is completed

* There are a lot of couples out there that just need a studio for a few days

* Rents on the gulf of Mexico can be higher than some other beach markets

Here are some of the cons I see:

* May not rent well this year during the construction phase

* Parking is limited, and I am not sure they will expand it

* The building is still very old (1965)

* While this is a good price for a studio, a slightly larger unit somewhere else might generate more revenue

* Some of the google reviews are negative for this building, but that is because it needs to be remodeled

* The HOA is still around $550.00 per month, but that is not unreasonable

I will still run numbers to see how these could cashflow with 10% or 20% down, etc. but I just wanted to get some feedback from experienced investors about buying condos that are under assessment/renovations

It seems like the worst case scenario is that the mortgage gets paid and we bring in an extra $8K to $10K annually if we self manage, and that area is likely to continue to appreciate year over year.

Thanks!

You won’t get a condo for 10% down. More like 20-25% down. 

I’m not familiar with this area, IF the numbers pencil out and it’s an area you like, I wouldn’t let that stop you. 

but if you are breaking even, that’s not a deal I want. 

Hi,

We currently have a beachfront 1BR/Bath condo in Myrtle Beach that we acquired in 2022, and we are looking at possibly acquiring a second STR in another location.

We understand this is a difficult time to find good cash flowing deals at today's interest rates and listing prices.

We have always preferred to vacation in the Gulf of Mexico, but we couldn't make the numbers work there last year which is how we ended up in Myrtle Beach at a price point we are happy with.

I just stumbled across quite a few beachfront studio condos that are being sold at a great price near the Panama City Beach area. The building was built in 1965, and it is one of the oldest in the area. They are about to go thru a renovation that will be completed by the end of this year, so the HOA issued a mandatory assessment for all of the condo owners. This assessment is about $40,000 per unit. This probably explains why there are quite a few units for sale on the market, but they are selling from $169,000 to $250,000. Some of the sellers have already remodeled the inside, and some sellers are willing to pay the assessment fee.

This looks like a good deal to find a unit right on the water, but the annual rental revenue is just $25k to $30K annually.

Also, these units are about 300+ sq ft. some have partial views of the gulf, but for most of the units you have to go to the community pool deck to get any gulf front view.

Here are some of the pros I see with this investment:

* Low cost of entry for a gulf front rental in a desirable area

* The amenities and building should be more valuable after construction is completed

* There are a lot of couples out there that just need a studio for a few days

* Rents on the gulf of Mexico can be higher than some other beach markets

Here are some of the cons I see:

* May not rent well this year during the construction phase

* Parking is limited, and I am not sure they will expand it

* The building is still very old (1965)

* While this is a good price for a studio, a slightly larger unit somewhere else might generate more revenue

* Some of the google reviews are negative for this building, but that is because it needs to be remodeled

* The HOA is still around $550.00 per month, but that is not unreasonable

I will still run numbers to see how these could cashflow with 10% or 20% down, etc. but I just wanted to get some feedback from experienced investors about buying condos that are under assessment/renovations

It seems like the worst case scenario is that the mortgage gets paid and we bring in an extra $8K to $10K annually if we self manage, and that area is likely to continue to appreciate year over year.

Thanks!

Post: Myrtle beach oceanfront condo

Chris NolesPosted
  • Investor
  • Jasper, ga
  • Posts 51
  • Votes 25

I picked up one last year, and @Myrtle Mike Thompson was very helpful in finding us a good one remotely since we were buying out of state.  We didn't have any bookings from November thru early February, but July booked up pretty fast in March. It's definitely seasonal unless you can find a snowbird to carry you thru the winter.

We average $115.00 per night min. and peak around $275.00 for weekends in June/July.

I hope this helps!

Post: Woodstock GA REI Meetup

Chris NolesPosted
  • Investor
  • Jasper, ga
  • Posts 51
  • Votes 25

Hey Berenger!  It is great to see you again.  Thanks for sharing the facebook page link.  

Post: Woodstock GA REI Meetup

Chris NolesPosted
  • Investor
  • Jasper, ga
  • Posts 51
  • Votes 25

I have an office at Thrive iins at the Mill in Canton, and I would be interested in attending the meetup if someone has more details on what time the meeting is?

Post: Need STR advice

Chris NolesPosted
  • Investor
  • Jasper, ga
  • Posts 51
  • Votes 25
Quote from @Ryan Moyer:
Was it the realtor that was trying to sell you the condo?

No. It was someone I spoke to who has a few condos in Gatlinburg.